Through sub-lending against ECB approvals allowed under the Policy, Development Financial Institutions are subjected to give priority to the needs of medium and small scale units.

External Commercial Borrowings (ECB) can be accessed under two routes, viz.,

- Automatic Route and

- Approval Route.

Camellia's proactive approach to business is bolstered by its team of professionals empowered to exploit business opportunities.

This, together with a strong sense of commitment, has been instrumental in establishing strong business relationships with reputed corporate houses and business groups.

Automatic Route

ECB for investment in real sector -industrial sector, especially infrastructure sector-in India, will be under Automatic Route, i.e. will not require RBI/Government approval. In case of doubt as regards eligibility to access Automatic Route, applicants may take recourse to the Approval Route.

Amount And Maturity

ECB up to USD 20 million or equivalent with minimum average maturity of three years.

ECB above USD 20 million and up to USD 500 million or equivalent with minimum average maturity of five years

The maximum amount of ECB which can be raised by an eligible borrower under the Automatic Route is USD 500 million during a financial year.

ECB up to USD 20 million can have call/put option provided the minimum average maturity of 3 years is complied before exercising call/put option.

End-Use

ECB can be raised only for investment (such as import of capital goods, new projects, and modernization/expansion of existing production units) in real sector - industrial sector including small and medium enterprises (SME) and infrastructure sector - in India. Infrastructure sector is defined as

ECB proceeds can be utilized for overseas direct investment in Joint Ventures (JV)/Wholly Owned Subsidiaries (WOS) subject to the existing guidelines on Indian Direct Investment in JV/WOS abroad.

Utilization of ECB proceeds is permitted in the first stage acquisition of shares in the disinvestment process and also in the mandatory second stage offer to the public under the Government’s disinvestment programme of PSU shares.

Utilization of ECB proceeds is not permitted for on-lending or investment in capital market by corporate

Utilization of ECB proceeds is not permitted in real estate. The term ‘real estate’ excludes development of integrated township as defined by Ministry of Commerce and Industry, Department of Industrial Policy

End-uses of ECB for working capital, general corporate purpose and repayment of existing Rupee loans are not permitted.

Prepayment

Prepayment of ECB up to USD 100 million is permitted without prior approval of RBI, subject to compliance with the stipulated minimum average maturity period
as applicable for the loan.

Procedure

Borrower may enter into loan agreement with recognized overseas lender for raising ECB under Automatic Route without prior approval of RBI. The borrower may note to comply with the reporting arrangement under paragraph 2(C) (i). The primary responsibility to ensure that ECB raised / utilized are in conformity with the ECB guidelines and the Reserve Bank regulations/directions/circulars is that of the concerned borrower.

The approval route of ECB is also being used for getting the finance facility for the companies.

Camellia Corporate Solutions Pvt. Ltd. is exclusively involved in arranging External Commercial Borrowings as per the client’s requirement through Automatic Route in minimum time and documentation.